ERP MRP, Procurement & Inventory Modules 2

Question 1

In MRP, what does the term 'time bucket' refer to?

Accepted Answer

The unit of time used to organize planning periods in the MRP schedule

Answer

A time bucket is the planning period unit (day, week, or month) used to organize MRP demand and supply calculations.

Question 2

Which procurement document is typically issued to a vendor after a purchase order is accepted, confirming shipment details?

Accepted Answer

Advance Shipment Notice (ASN)

Answer

An ASN is sent by the vendor before delivery to notify the buyer of shipment details such as contents, quantities, and expected arrival.

Question 3

What is 'phantom assembly' in MRP?

Accepted Answer

A subassembly that exists only in the BOM and is never stocked as a discrete item

Answer

A phantom assembly is a BOM level that represents a transient subassembly passed through directly to the parent without being stocked.

Question 4

Under a consignment inventory arrangement, when does title (ownership) of inventory typically transfer to the buyer?

Accepted Answer

When the buyer consumes or sells the goods

Answer

In consignment arrangements, the supplier retains ownership until the buyer uses or sells the goods, at which point title transfers.

Question 5

What is the primary purpose of a 'blanket purchase order' in procurement?

Accepted Answer

To establish a long-term agreement for recurring purchases at pre-negotiated terms

Answer

A blanket PO covers multiple deliveries of the same item over a period at agreed pricing, reducing administrative overhead.

(ERP) Enterprise Resource Planning Certified Practice Test